DOCSLIB.ORG

Stock Price Predictions

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Stock Price Predictions An Interactive Qualifying Project submitted to the Faculty of WORCESTER POLYTECHNIC INSTITUTE in partial fulfilment of the requirements for the degree of Bachelor of Science by Chang Liu Date: July 19, 2019 Report Submitted to: Professor Mayer Humi, PhD Worcester Polytechnic Institute This report represents work of WPI undergraduate students submitted to the faculty as evidence of a degree requirement. WPI routinely publishes these reports on its web site without editorial or peer review. For more information about the projects program at WPI, see http://www.wpi.edu/Academics/Projects. Abstract The objective of this project was to predict stock prices over a short period of time, possibly several weeks. First, we chose 10 stocks of interest in the same sector. To make informed predictions, we built several models for the historical prices of the stocks and used those models to predict future prices. Then, we analyzed the results of those models to improve the predictions. In addition, a portfolio of the 10 stocks was created to measure their performance. 1 Table of Contents Abstract ........................................................................................................................................... 1 Executive Summary ....................................................................................................................... 3 Introduction .................................................................................................................................... 5 Background .................................................................................................................................... 7 Stock 1: Microsoft Corporation (NASDAQ: MSFT) ........................................................................... 7 Stock 2: Apple, Inc. (NASDAQ: AAPL)................................................................................................ 8 Stock 3: Facebook, Inc. (NASDAQ: FB) ............................................................................................... 8 Stock 4: Intel Corporation (NASDAQ: INTC) ..................................................................................... 9 Stock 5: Oracle Corporation (NYSE: ORCL) .................................................................................... 10 Stock 6: QUALCOMM, Inc. (NASDAQ: QCOM) ............................................................................. 11 Stock 7: NVIDIA Corporation (NASDAQ: NVDA) ........................................................................... 11 Stock 8: Dell Technologies, Inc. (NYSE: DELL) ................................................................................ 12 Stock 9: Baidu, Inc. (NASDAQ: BIDU) .............................................................................................. 13 Stock 10: Advanced Micro Devices, Inc. (NASDAQ: AMD) ............................................................. 13 Methodology ................................................................................................................................. 15 Autocorrelation Model .......................................................................................................................... 15 Trend Model .......................................................................................................................................... 16 Fourier Series Model ............................................................................................................................. 17 Fourier Series Correlated with Stock Index Model ........................................................................... 18 Virtual Portfolio .................................................................................................................................... 20 Results........................................................................................................................................... 21 Autocorrelation Model .......................................................................................................................... 21 Trend Model .......................................................................................................................................... 26 Fourier Series Model ............................................................................................................................. 31 Fourier Series Correlated with Stock Index Model ........................................................................... 37 Virtual Portfolio .................................................................................................................................... 43 Conclusion .................................................................................................................................... 44 Bibliography ................................................................................................................................. 45 2 Executive Summary The project began with choosing a sector of stocks to concentrate on. We chose the technology sector because stocks in this sector had been growing rapidly since the dotcom bubble. Many small companies, such as Facebook and Amazon became technology giants in the last decade. The 5 most weighted Nasdaq 100 Index companies were all in the tech sector. If we chose stocks in this sector, we would be very likely to earn high profits from our investments. Next, we chose 10 mid-range stocks in the technology sector. The stocks chosen needed to be trading between $20 and $200 so that they were accessible to relatively small investors. As of 6/21/19, the Google stock was trading over $1000. Even one share of such a stock might be too expensive to buy for investors with little capital. Also, if a stock was trading too low, there might be a risk for the stock price to drop dramatically or even exit the market. Therefore, mid- priced stocks were the most appropriate for small investors. After choosing 10 stocks, we started to build models for the stock prices. The first step was to determine for how long the historical prices were relevant to today’s stock prices. We calculated the autocorrelation coefficient of the stock prices over the past two years and found the period where the autocorrelation coefficient was greater than zero. The length of this period might vary from stock to stock but was usually several months. Then we developed three models to fit the historical prices of the stocks. The three models were the Trend Model, the Fourier Series Model, and the Fourier Series Correlated with Stock Index Model. After each model was developed, we tried to extend the model to the future and evaluated how well the model 3 performed as time passed. In the meantime, we also created a virtual portfolio to demonstrate that we were able to make some profits throughout this project. 4 Introduction To many average people, investing in the stock market is one of their best ways to make investments. Unlike other forms of investments, stocks have very high liquidity. A real estate can take months to be sold, but stocks can be traded instantly for cash, which is considered to be of the highest liquidity. Stocks also support flexible trading, which allows investors to quickly make adjustments to market fluctuations. Bonds like fixed deposits, on the other hand, can only be redeemed after the fixed date. If the interest rate goes up before the bonds are due, investors cannot sell them for more interests. In fact, trading stocks is so convenient today that people can utilize computer programs to make transactions automatically. Many online brokers offer investors the option to buy or sell a stock when certain conditions happen. This project mainly focused on the U.S. stock market, as it is the largest stock market in the world. Both the Nasdaq Stock Market and the New York Stock Exchange have a variety of stocks for us to choose. Also, since the U.S. Dollar is the most widely available and accepted currency in the world, trading stocks in U.S. Dollar is very friendly to international investors. This project aimed to benefit small investors the most. While large financial institutions often had lots of computing resources like central servers to trade stocks automatically at a very high frequency, models developed in this project could be easily implemented on a personal computer running MATLAB (MATLAB, n.d.). The methods were designed so that they could be easily modified to fit an investor’s own choice of stocks. In addition, since the stocks of choice were priced moderately, no significant amount of investments was required. The stocks we chose were all from big companies and were relatively immune to market fluctuations. This meant that we were unlikely to see dramatic stock price drops. Also, this project assumed very little 5 background knowledge from the audience, as any necessary technical term would be thoroughly explained in later sections. Last but not least, the functions used in our code were all from common MATLAB libraries, so the users did not need to purchase additional software packages. 6 Background There were more than 5,000 stocks trading in the U.S. stock market, so we needed to choose a sector to narrow our focus. We chose the technology sector because the U.S. was leading in many areas such as Electrical Engineering and Computer Science. Almost all the technology giants were based in the Silicon Valley in the U.S. and their stocks had been growing generally faster than
Recommended publications
  • Intel Corporation

    Intel Corporation

    US RESEARCH | PUBLISHED BY RAYMOND JAMES & ASSOCIATES INTEL CORPORATION (INTC-NASDAQ) JULY 26, 2021 | 8:27 PM EDT Semiconductors COMPANY BRIEF Chris Caso | (212) 856-4893 | [email protected] Melissa Fairbanks | (727) 567-1081 | [email protected] Underperform 4 New Names, Same Problems Suitability M/ACC Intel hosted its "Intel Accelerated" manufacturing roadmap update Monday evening, detailing their process roadmap through 2025. The presentation laid a path through which Intel hopes to MARKET DATA Current Price (Jul-26-21) $54.31 have achieved parity with TSMC (and by extension, AMD) by 2024, and a goal of process leadership Market Cap (mln) $221,802 by 2025. This is no different from the goals laid out by Intel’s new CEO when he came on board Current Net Debt (mln) $10,552 a quarter ago, but the company did provide more details about how they intend to achieve that Enterprise Value (mln) $232,354 Shares Outstanding (mln) 4,084.0 goal. Attaining leadership by 2025 requires Intel to introduce a full process node improvement 30-Day Avg. Daily Value (mln) $1,362.7 each year for the next 4 years – an aggressive assumption given the production missteps from Dividend $1.39 the past several years. What Intel didn’t disclose were the costs of this roadmap, which we Dividend Yield 2.6% 52-Week Range $43.61 - $68.49 expect them to discuss during the November analyst day. And while there is great uncertainty BVPS $14.76 about Intel’s ability to achieve these targets, what’s less uncertain is a requirement for higher Long-Term Debt (mln) $24,632 capital intensity.
  • Chinese Internet Companies and Their Quest for Globalization

    Chinese Internet Companies and Their Quest for Globalization

    International Conference on Information, Business and Education Technology (ICIBIT 2013) Chinese Internet Companies and Their Quest for Globalization Harlan D. Whatley1 1Swiss Management Center, Zurich, Switzerland Abstract players in the technology market (Sun, 2009). Chinese internet companies have seen an This qualitative research paper unprecedented growth over the past explores the quest for globalization of decade. However, very few are two successful Chinese internet recognized brands outside of China while companies: Baidu and Tencent Holdings. some seek to develop their brands in In this case study, the focus is on the foreign markets. This paper analyzes the marketing strategies of these expanding marketing strategies of two internet multinational enterprises and the companies: Baidu and Tencent and their challenges they face to become quest for globalization. recognized as global brands. All of the firms in this study were founded as Keywords: Baidu, Tencent, internet, private enterprises with no ownership ties branding, marketing, globalization, China to the Chinese government. Furthermore, an analysis of the countries and markets 1. Introduction targeted by the firms is included in the study. In addition to a review of the Innovation efforts by technology current academic literature, interviews companies in China are driven by adding were conducted with marketing and significant value to imported foreign strategy professionals from the technologies or by developing new perspective firms as well as journalists products to satisfy specific domestic that closely follow Chinese internet firms demands (Li, Chen & Shapiro, 2010). and the technology sector. This study on Firms in the emerging market of China do the globalization of Chinese internet not possess the R&D resources that their firms will contribute to marketing developed Western counterparts have.
  • Analysis and Discussion on the Network Self Made Drama Under the Network Platform

    Analysis and Discussion on the Network Self Made Drama Under the Network Platform

    Analysis and Discussion on the Network Self Made Drama under the Network Platform Xiaoxia LI Zibo Vocational Institute Abstract: In recent years, with the continuous deepening of the integration of Internet and film and television creation, China has entered the online drama world spawned by the “Internet”. In the development trend of online drama, self-made content has become the foundation of every major platform. In 2020, the network self-made drama will be stable and new. Under the benign situation of stable development, it will move towards higher quality and broader stage. Keywords: Network; Platform; Homemade drama; Film and television DOI: 10.47297/wspciWSP2516-252708.20200409 1. The Rise of Self-made Drama in the Network Video Platform (1) The characteristics of network communication and the platform advantage of mastering the front market data, the network self-made drama has high interaction and market sensitivity. (2) Behind the rise of the network self-made drama is the network video platform that is eager for more control. n the increasingly fierce and cruel competition of “film and television winter”, Ithe network self-made drama makes these online video platforms escape the copyright purchase cost of the sky price, and change from passive content competition to active participation in content production, and become the core of platform differentiation competition. At the same time, this benign change also contains the vision of the film and television industry to reshape the content ecology. About the author: Xiaoxia LI (1978-02), female, from Zibo City, Shandong Province, master, lecturer, engaged in computer applications, network big data and artificial intelli- gence.
  • Read the Report

    Read the Report

    23 Dec 2020 CMB International Securities | Equity Research | Company Initiation iQIYI (IQ US) BUY (Initiation) China’s online Disney in the making Target Price US$23.2 Up/Downside +34.8% Current Price US$17.2 We keep positive on IQIYI’s long-term subs trend and margin improvement , backed by its sizable users, unique original content and valuable IP. We forecast iQIYI to deliver 11% revenue CAGR during FY20-22E, with subs price hike and China Internet Sector ads recovery. Given fundraising partly priced in, we think iQIYI’s valuation is attractive. Initiate with BUY with DCF-based TP US$23.2. Sophie Huang An online video leader: Not only “Netflix”, but more. iQIYI is a leading (852) 3900 0889 online video platform in China, with 105mn subs. Backed by its sizable users, [email protected] vibrant original content and IP reserve, we forecast iQIYI to deliver 11% rev CAGR in FY20-22E, with subs price hike, ads recovery, and user expansion. Miriam Lu (852) 3761 8728 Original content makes the difference. With online video industry growth [email protected] tapering off, we believe content matters more to users than traffic or subsidies. iQIYI exceled itself with exclusive original content in both popular dramas and variety shows. Moreover, it bore initial fruits from short-episode dramas (e.g. Stock Data Mkt Cap (US$ mn) 13,499 the popularity of The Bad Kids <隐秘的角落>), and would further enrich Light Avg 3 mths t/o (US$ mn) 180.41 on Series (迷雾剧场) with stronger pipeline. We expect short-episode dramas 52w High/Low (US$) 28.03/ 14.51 series to stimulate its subs & brand ads momentum with higher ROI, such as Total Issued Shares (mn) 373 Who is Murderer<谁是凶手> in 2021 pipeline.
  • From Western TV Sets to Chinese Online Streaming Services: English-Language TV Series in Mainland China

    From Western TV Sets to Chinese Online Streaming Services: English-Language TV Series in Mainland China

    . Volume 16, Issue 2 November 2019 From Western TV sets to Chinese online streaming services: English-language TV series in mainland China Xiaoran Zhang, University of Nottingham, UK Abstract: In the age of multiple screens, online streaming has in the 2010s become the most significant way of consuming overseas television programs in Mainland China. Due to rather strict government policy and censorship, foreign television series are presently only legally distributed and circulated on licensed online streaming services. Focusing on the streaming of US/UK TV series, this paper examines online streaming services’ distribution activities in order to understand both streaming websites’ business practices surrounding transnational TV and the features they employ to cater to online audiences for these series. To grasp how the online distribution of English-language TV series operates in China, I begin by looking at China’s five major video streaming services, analyzing the design of their interfaces, scheduling of programs, and accessibility for different tiers of users. I then examine how streaming services use social media as a major tool to promote their US and UK TV series. Through this analysis, I argue that transnational TV flow has had to be localized to achieve distribution and marketing goals in a Chinese context, resulting in the uniqueness of these streaming practices. This article concludes that, with the development of online streaming technologies, distinctive modes of audience consumption in China have informed the localization of this specific transnational TV content. Keywords: Online streaming, streaming consumption, television distribution, transnational TV, Tencent Video, HBO, Game of Thrones Introduction As one of HBO’s most successful high-end shows, Game of Thrones (2011-) has earned a worldwide reputation that includes the fandom of Chinese viewers.
  • Most Recent Chinese 'Ad Block' Judgment Affirms Ad-Based Revenue Model for Internet Businesses 13 November 2015

    Most Recent Chinese 'Ad Block' Judgment Affirms Ad-Based Revenue Model for Internet Businesses 13 November 2015

    Most recent Chinese 'ad block' judgment affirms ad-based revenue model for Internet businesses 13 November 2015 On 14 October 2015, a local court in Shanghai adopted the The judgment latest in a series of judgments on the legality of software and On the ad block claim, the Shanghai court held that the VST other technical measures that block or skip advertisements on software had decrypted iQiyi's security key codes so that digital platforms. iQiyi's servers mistakenly took VST's access requests as In its judgment, the Shanghai Yangpu District People's Court coming from iQiyi's own platform. Through this approach, the found that Juwangshi Technology Corporation ("Juwangshi"), court found, the VST software was able to directly displaying a video streaming service aggregator, had breached anti- iQiyi's videos without the ads, which had the same effect as unfair competition rules by utilizing certain decryption explicit "ad blocking." The court pointed out that Juwangshi's measures to block ads while displaying videos streamed from ad blocking conduct was able to attract users who neither iQiyi, one of China's main online video sites. The judgment want to watch ads nor pay for iQiyi membership, which in turn also addressed the issue of online businesses "scraping reduces iQiyi's revenues. content" (i.e., using information) from other websites. On this point, the Shanghai court judgment is consistent with Background to the case a series of "ad block" judgments by various Chinese courts in the last two years. For example, in a judgment at the end of The plaintiff in this case was iQiyi, which streams video July 2015, the Beijing Shijingshan District People's Court programs for free but has ads embedded at the beginning of found Hualu Tianwei, also an online video aggregation the programs.
  • FAANG+ UCITS Fund Is a Sub-Fund Within AQA Broad Representation of the Market, the Due to Their High Growth Potential

    FAANG+ UCITS Fund Is a Sub-Fund Within AQA Broad Representation of the Market, the Due to Their High Growth Potential

    + www.castlestonemanagementllc.com Fund Objective The investment objective of the Sub-Fund is to generate capital growth mainly through exposure to the development, advancement and use of technology. The Sub-Fund will be invested in global technology equities some of which are familiarised by the acronym “FAANG” defining the most well-known technology equities. Apart from the FAANG equities, the Sub-Fund will also invest in other large technology stocks. Up to 100% of the assets of the Sub-Fund may be invested in equities. Why invest in FAANG+ UCITS Growth Market Leaders in Inflows from Passive Broad Exposure to Global Story Different Sectors Investors Technology Companies FAANG+ offers exposure UCITS diversified portfolio The S&P 500 is a market FAANG+ holds names to companies that of the leading technology capitalisation weighted Index. diversified across the dominate the stocks in the S&P 500 The market cap of the Information Technology, technology sector and Index and MSCI World FAANG+ stocks represent Communication Services, have a history of strong Index. Exposure to some approximately 23% of the Financial and Consumer growth over the long- of the largest tech S&P 500 Index. This means Discretionary sectors, spread term. companies in the US, that for every $100 being throughout four global China, Taiwan, Korea, invested into the S&P 500 geographic locations. Europe. Index, approximately $23 is being invested into FAANG stocks and Microsoft. Sectors and Weightings (%) SECTORS & WEIGHTINGS (%)* TOP 10 HOLDINGS (%)* INFORMATION TECHNOLOGY
  • Wenbo Chen-Thesis.Pdf (517.6Kb)

    Wenbo Chen-Thesis.Pdf (517.6Kb)

    Contextual Innovation and R&D Strategy 1 Contextual Innovation and R&D Strategy An Analysis of the Competitive Advantage of Social Media Companies in China Senior Research Thesis Presented in partial fulfillment of the requirements for graduation with Research Distinction in Economics in the undergraduate colleges of The Ohio State University by Wenbo Chen Bachelor of Arts The Ohio State University October 2014 Thesis Committee: Professor Bruce W. Bellner (Chair) Department of Economics, College of Arts and Sciences Professor Mona Makhija Department of Management and Human Resources, Fisher College of Business Professor Oded Shenkar Department of Management and Human Resources, Fisher College of Business Contextual Innovation and R&D Strategy 2 Copyright statement: This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that the copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the prior written consent of the author and of the university (as may be appropriate). ©2014 Wenbo Chen All Rights Reserved Contextual Innovation and R&D Strategy 3 Acknowledgement I sincerely thank my project advisor professor Bruce W. Bellner for introducing me to the field of strategic management and sharing his insights on both economics and business. I thank professor Mona Makhija for her tremendous insights on helping me develop my initial research question and providing rigorous training on research. I thank professor Oded Shenkar for his interest on my research and providing guidance on research methods. I thank all of you for your interest on social media in China.
  • Ipox® Portfolio Holding Analysis 02/24/2021

    Ipox® Portfolio Holding Analysis 02/24/2021

    IPOX® PORTFOLIO HOLDING ANALYSIS 02/24/2021 To learn more, visit www.ipox.com; Email: [email protected] MARVELL TECHNOLOGY GROUP LTD (MRVL US) | AQUANTIA CORP (AQ US) Office: +1 (312) 526-3634 COMPANY DESCRIPTION Support +1 (312) 339-4114 ACQUIRER Founded in 1995, Marvell Technology Group is semiconductor company headquartered in Santa Clara, CA. Marvell provides data infrastructure semiconductor solutions for data storage, processing, networking, security and connectivity. TARGET Founded in 2004, Aquantia Corp is a fabless semiconductor company that designs, develops and markets advanced high-speed communications integrated circuits (ICs) for Ethernet connectivity. TARGET IPO HISTORY Aquantia began trading on the NYSE on 11/3/2017 led by Morgan Stanley. The ICs developer sold 6,818,000 shares at $9.00 per share, below its expected price range ($10 to $12). With the 15% greenshoe options fully exercised, Aquantia was valued at ca. $300.09 million. The shares opened at $9.31/share and closed the first day higher at $9.51 (▲5.67%). Aquantia Corp entered the IPOX® Universe on the 7th day of trading. M&A HISTORY Marvell Technology Group announced to buy Aquantia for $452 million on 5/9/2019 at $13.25 per share in cash, which represented a 38.60% premium to Aquantia’s previous close. The acquisition of the Multi-Gig Ethernet company was completed on 9/19/2019. Marvell Technology Group was included in the IPOX® 100 U.S. Portfolio (ETF: FPX) on 3/23/2020 and currently weights approximately 4.90% of the portfolio. *Marvell Technology Group was added to the Nasdaq-100 Index® on December 21, 2020.
  • AMD Socket AM2 with AMD M690T Chipset Reference Schematic D D

    AMD Socket AM2 with AMD M690T Chipset Reference Schematic D D

    5 4 3 2 1 AMD Socket AM2 with AMD M690T Chipset Reference Schematic D D NOTES: Page Index Page Index ------- -------------------------------------------- ------- -------------------------------------------- 1) This schematic supports the AMD Socket AM2 CPU devices. 1 Cover Page 17 SB600 PCIe, PCI, LPC, Straps, & CPU Control 2) These are "Reference Schematics" and as such they have 2 Revision History 18 SB600 ACPI, GPIO, USB, and Audio Interfaces not been verified by an actual board build. 3 Block Diagram 19 SB SATA, IDE, SPI, and HW Management Interfaces 3) This reference schematic supports AMD M960T revision 4 Clock Structure 20 SB600 Power A12 or later. If A12 or later revision is not used, please 5 Power Configuration (1) 21 CRT Connector see your customer support representative for the 6 Power Configuration (2) 22 Broadcom Ethernet Controller necessary application notes for workarounds. 7 Reset & Voltage Sequence 23 Realtek Audio Codec C 4) This reference schematic supports SB600 revision 8 Socket AM2 HT Interface 24 LPC BIOS C A21 or later. If A21 or later revision is not used, please 9 Socket AM2 DDRII Memory Interface 25 USB Power and Connectors see your customer support representative for the 10 Socket AM2 Control & Debug 26 Power Main System, SB600 PCIe, & Other necessary application notes for workarounds. 11 Socket AM2 Power & Ground 27 Standby Power & Powergood 5) Unless otherwise specified, resistors have 5% tolerance. 12 SODIMM DDR2 28 Power for CPU Core 13 M690T HT, PCI, PCIe(R), PCIe Graphics Port 29 Power for DDR2 Memory and Interface 6) Unless otherwise specified, capacitors have 20% tolerance. 14 M690T PLL and Video Interface 30 Power M690T Core, PCIe Interface 15 M690T Power and Side Port Memory Interface 31 Unused Interfaces 16 Clock Generator IMPORTANT NOTICE: B 1.
  • Insight Notes Linked to the J.P. Morgan Quest 5G Thematic Basket (Jan 2021) Due February 18, 2022 Fully and Unconditionally Guaranteed by Jpmorgan Chase & Co

    Insight Notes Linked to the J.P. Morgan Quest 5G Thematic Basket (Jan 2021) Due February 18, 2022 Fully and Unconditionally Guaranteed by Jpmorgan Chase & Co

    The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. Subject to completion dated December 15, 2020 January , 2021 Registration Statement Nos. 333-236659 and 333-236659-01; Rule 424(b)(2) JPMorgan Chase Financial Company LLC Structured Investments Insight Notes Linked to the J.P. Morgan Quest 5G Thematic Basket (Jan 2021) due February 18, 2022 Fully and Unconditionally Guaranteed by JPMorgan Chase & Co. The notes are designed for investors who seek exposure to the performance of the J.P. Morgan Quest 5G Thematic Basket (Jan 2021) of 32 unequally weighted Reference Stocks, which we refer to as the Basket, as reduced by the Basket Deduction of 1.50%. The Reference Stocks in the Basket represent the common stocks / common shares / American depositary shares / ordinary shares of 32 U.S.-listed companies associated with the ongoing roll-out of fifth-generation wireless technologies (“5G”). Investors should be willing to forgo interest and dividend payments and, if the Basket is flat, declines or does not increase by at least 1.50%, be willing to lose some or all of their principal amount at maturity. The notes are unsecured and unsubordinated obligations of JPMorgan Chase Financial Company LLC, which we refer to as JPMorgan Financial, the payment on which is fully and unconditionally guaranteed by JPMorgan Chase & Co. Any payment on the notes is subject to the credit risk of JPMorgan Financial, as issuer of the notes, and the credit risk of JPMorgan Chase & Co., as guarantor of the notes.
  • Advanced Micro Devices, Inc. 2485 Augustine Drive Santa Clara, California 95054

    Advanced Micro Devices, Inc. 2485 Augustine Drive Santa Clara, California 95054

    ADVANCED MICRO DEVICES, INC. 2485 AUGUSTINE DRIVE SANTA CLARA, CALIFORNIA 95054 NOTICE OF ANNUAL MEETING OF STOCKHOLDERS You are cordially invited to attend our 2020 annual meeting of stockholders (our “Annual Meeting”) to be held on Thursday, May 7, 2020 at 9:00 a.m. Pacific Time. In light of the coronavirus/COVID-19 outbreak and governmental decrees that in-person gatherings be postponed or canceled, and in the best interests of public health and the health and safety of our Board of Directors, employees and stockholders, the Annual Meeting will be held virtually via the Internet at www.virtualshareholdermeeting.com/AMD2020. You will not be able to attend the Annual Meeting in person. We are holding our Annual Meeting to: • Elect the eight director nominees named in this proxy statement; • Ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the current fiscal year; • Approve on a non-binding, advisory basis the compensation of our named executive officers, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the U.S. Securities and Exchange Commission (the “SEC”); and • Transact any other business that properly comes before our Annual Meeting or any adjournment or postponement thereof. We are pleased to provide access to our proxy materials over the Internet under the SEC’s “notice and access” rules. As a result, we are mailing to our stockholders (other than those who previously requested printed or emailed materials on an ongoing basis) a Notice of Internet Availability of Proxy Materials (the “Notice”) instead of printed copies of our proxy materials.